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Find out how to choose the best instant access offshore savings account for your circumstances.
Many UK-based building societies and banks offer instant access offshore savings accounts. These are primarily for British citizens living or working abroad. However, many are also available to UK residents too.
Instant access offshore savings accounts differ from fixed term or notice offshore accounts in the sense that you can access the money whenever you need to.
So how do you identify the best instant access offshore savings account for your circumstances?
Your offshore instant access savings comparison should start by double checking which accounts you are eligible to open. If you are a UK resident then number of offshore savings accounts that are available to you will be more limited.
Once you’ve established the offshore instant access savings companies that offer accounts you are eligible for you should check the minimum deposit the banks require in order to qualify for their headline interest rate.
The minimum deposit required to open an offshore instant access savings accounts is, on average, higher than for UK savings accounts so this can have a large bearing on the account you end up choosing. Some banks accept a deposit of as low as £20 but certain offshore instant access savings companies require as much as £100,000 before they’ll pay you their best interest rate.
Additionally, some banks offer a tiered system where, for instance, the interest rate for any savings above £25,000 attracting higher offshore instant access savings rates than the first £25,000.
Higher minimum deposit accounts typically have the best offshore saving rates but this isn’t always the case.
Once you’ve narrowed down your options to the offshore savings accounts that you are eligible for it’s time to look at interest rates. Going for the best return possible is a good idea, although because the rate payable will be variable you will need to continue to monitor your account on an ongoing basis to ensure your savings remain profitable.
There are other considerations that are also important when choosing an instant access offshore savings account such as means of access (branch, online, phone, post or ATM), whether there is a maximum amount allowed per account (some banks do not allow the balance in an offshore savings account to exceed £5,000,000) and the discrepancy on interest rates based on currency (e.g. the interest rate for a USD, EUR and GBP instant access offshore savings account may be different even within the same bank).
Remember that instant access offshore savings accounts are not covered by the UK’s FCFS which guarantees compensation of up to £85,000 per customer per bank in the event that the bank is unable to guarantee customer deposits. Many offshore jurisdictions have developed their own compensation guarantee so this is something to investigate before you commit any funds.
